Exposure to Spanish and Irish bonds reduced
Limited effect on profit and capital base
BinckBank has reduced its exposure to Spanish and Irish bonds, largely before the recent S&P downgrade of Spain. The volume of investments in Ireland and Spain has been brought back with 60% to € 160 million (was € 402 million). The remaining investments in Spain and Ireland consist of government guaranteed bonds issued by Spanish and Irish banks with a remaining average duration of 1.4 years. The management board of BinckBank considers the remaining level of exposure in line with BinckBank's desired risk profile.
In accordance with BinckBank's investment policy the proceeds of the sales have been partly reinvested in actively quoted Covered Bonds regulated by the German government (Öffentliche Pfandbriefe). The expected return on the reinvestment is approximately 1.0% per annum.
The changes in the investment portfolio have a limited negative impact on the profit and capital base of the bank. The net losses on the changes in the investment portfolio (Result from financial instruments) have a negative impact on the adjusted net earnings per share in the second quarter of approximately € 0,01.
Koen Beentjes, CEO:
"Our principles of prudent and conservative investment policies, which have previously helped us through the credit crisis undamaged, will remain unchanged. Under the present circumstances prudence should prevail and we have taken timely action. Most of our investment portfolio remains invested in German Covered Bonds (Öffentliche Pfandbriefe), which have recently increased in value. BinckBank, with its core capital of € 104 million, is, even in the case of any contingent losses, more than able to meet the minimum capital requirement of the regulator requirements (BIS ratio per FY10 Q1: 18,6%)".
Further information BinckBank N.V.
BinckBank is an online bank for investors and is ranked among the top five in Europe. As an online broker, BinckBank offers its clients fast and low-cost access to all major financial markets worldwide. Moreover, as an asset management bank, BinckBank provides support to its clients in the management of their capital through online asset management services and online savings accounts. In addition to fast and low-cost order execution, BinckBank also provides services to professional clients in the field of the administrative processing of securities and cash transactions by means of an outsourcing agreement (BPO), or the licensing of the related software.
The company is listed on Euronext Amsterdam and has offices in the Netherlands, Belgium, France and Spain. Ultimo 2009 the company employed 620 employees. Business activities are segmented into two business units: Retail and Professional Services. BinckBank was founded in 2000 and has currently more than 390,000 accounts.
Public Relations:
Harmen van der Schoor
t: 0031 20 522 03 78
e: hvdschoor@binck.nl
Investor Relations:
Anneke Hoijtink
Telephone: 0031 20 522 0372 / 0031 620 198 337
ahoijtink@binck.nl
BinckBank N.V.
Vijzelstraat 20
1017 HK Amsterdam
The Netherlands
www.binck.com
